The future of New Providence’s $130 million electricity transmission and distribution (T&D) overhaul has been thrown into uncertainty after the project’s lead management firm, Island Grid, formally exited its contract two years into what was originally planned as a 25-year partnership. The sudden departure has prompted Opposition Leader Michael Pintard to call on the Davis administration to deliver immediate clarity and full transparency to the Bahamian public over the project’s trajectory.
Island Grid, an infrastructure firm founded by principal Eric Pike to pursue utility projects across small island nations, confirmed its withdrawal from the management agreement with Bahamas Grid Company (BGC) — the special purpose vehicle created to own and upgrade New Providence’s energy grid — took effect yesterday. Alongside the firm’s exit, Pike and fellow Island Grid executive Mei Shibata stepped down from their BGC board positions. Anthony Ferguson, chief executive of Bahamas-based investment firm CFAL, has been named BGC’s new chairman, replacing Pike.
BGC is structured as a public-private partnership, with Bahamas Power & Light (BPL) holding a 40% minority stake and a consortium of private investors controlling the remaining 60% stake. The firm announced the appointment of two new Bahamian senior leaders alongside the leadership transition: Dareo McKenzie, a 30-year energy sector veteran with stints at GE Vernova and Consolidated Edison of New York, as chief executive, and Gladys Fernander, a former Commonwealth Bank CFO and certified public accountant with 20-plus years of regulated finance experience, as chief financial officer.
In a statement responding to media inquiries, the Bahamian government sought to reassure the public that Island Grid’s exit would not disrupt ongoing infrastructure work. “The management agreement has come to an end. The investment is ongoing and continues to progress as planned,” said Latrae Rahming, communications director for Prime Minister Philip Davis. “The company is now Bahamian-led, and we have full faith and confidence in its leadership, capacity and ability to deliver on its commitments.”
Ferguson echoed that sentiment in BGC’s official release, framing the transition as a milestone shift to a fully independent, all-Bahamian-led operating model. “Together, Dareo and Gladys bring the operational and financial leadership required to grow a resilient, high-performing utility,” Ferguson said. “Just as importantly, this transition reflects the strength and capability of Bahamian leadership at every level of the organisation. On behalf of the Board, I want to thank Eric, Mei and the entire Island Grid Solutions team for their leadership and expertise in building Bahamas Grid Company into a fully operational utility and strengthening New Providence’s transmission and distribution system. We now move forward as a fully Bahamian-led organisation, focused on delivering long-term performance for our country.”
Pike also released a brief statement praising the project’s progress to date. “We are honoured to have had the opportunity to set up Bahamas Grid Company and conduct the biggest grid upgrade project for New Providence over the past two years,” he said. “I would like to recognise the dedicated employees of Island Grid, Pike and Bahamas Grid Company, whose hard work and commitment were instrumental to this achievement, and extend our best wishes for Bahamas Grid Company’ continued success.”
However, the sudden exit of Island Grid, which was contracted to manage the project for an initial 25-year term with an option to extend for an additional 10 years, has left dozens of unanswered questions that remained unaddressed as of press time. Multiple industry observers and political leaders have raised pointed concerns over the implications of the exit for the project, for energy consumers, and for the government’s broader clean energy goals.
Tribune Business had reported unconfirmed rumors of growing tensions and potential withdrawal for several weeks prior to yesterday’s announcement. Officials emphasized that Island Grid’s exit is unconnected to last month’s fatal shooting of a Pike Electrical employee, for which a senior Bahamian police superintendent has been charged. Roughly 40 Pike workers left the Bahamas immediately after the shooting to attend the deceased worker’s funeral and support his family, but roughly the same number are expected to return to complete existing contract obligations, meaning Pike Electrical’s on-the-ground work may continue despite Island Grid’s exit. There has been unconfirmed speculation that TPG and La Caisse, the private equity consortium that acquired a majority stake in Pike Electrical in November 2025, may step into Island Grid’s role, but no confirmation of that arrangement has been made public.
For decades, Pike Electrical — a family-founded firm established in 1945 — has supplied the labor, equipment, technical expertise, and training for the $130m upgrade that has been underway for two years. Original project documents confirm that BGC was structured to rely heavily on Island Grid’s technical and operational capacity: the 2024 Heads of Agreement between the government, BGC, and Island Grid granted Island Grid exclusive rights to develop and manage the entire project, and tasked the firm with assembling a team of global and local experts to oversee all implementation. Financial documents for the project’s $30m equity raise and $111m debt financing show Island Grid was contracted to earn $4.359m in annual management fees for the first five years of the project, with fees sliding gradually as T&D revenues grew.
One anonymous financial industry insider questioned the logic of Island Grid’s early exit, noting that the entire project was built around a decades-long investment horizon. “To get a return on investment, you aren’t taking over the entire grid for a short period of time. Your investment horizon is decades. They cannot claim this is all done and planned. This wasn’t for the short-term,” the source said. The insider added that BGC will be unlikely to replicate the preferential pricing and supply chain access Island Grid secured through its ties to the Pike network, particularly for large grid equipment that requires months-long lead times. “They [BGC] cannot replicate the Pike partnership. They do not have the reach and expertise, and level of people to pull from,” the source said. The insider also argued that Island Grid’s exit undermines BGC’s core purpose as a special purpose vehicle, noting that the entity already adds an extra layer of costs for taxpayers and energy consumers that could be eliminated by folding BGC’s functions back into BPL.
The exit also raises concerns for BGC’s investors, who were sold $111m in bonds based on offering materials that promised long-term Island Grid involvement. Bondholders are owed regular interest payments and the eventual return of their principal, and the unplanned transition has created new uncertainty over their returns.
Opposition Leader Pintard emphasized that the government’s entire energy strategy, including plans to bring 172 megawatts of new utility-scale solar power online via independent power producers (IPPs), hinges on the successful completion of the T&D grid overhaul. Without a fully upgraded grid, IPPs cannot safely connect and deliver their power to New Providence’s 100,000-plus BPL customers, which include both households and businesses.
“Much of what the Government has forecast depends on the grid,” Pintard told Tribune Business. “If we are talking about solar deals being signed on New Providence, has the grid upgrade work been completed to the extent it can receive power from IPPs? If the T&D system has not been dealt with, how does that impact all the IPPs relying on a stable grid that has the capacity to receive power from them? Everything hinges on this. It’s a fundamental issue.”
Pintard called on Prime Minister Davis and Energy Minister Jobeth Coleby-Davis to immediately open the process to public scrutiny, noting that Coleby-Davis claimed shortly after the shooting that the project remained on track, a statement that is contradicted by Island Grid’s exit. “Their overall strategic plan relies substantially on what happens with the transmission and distribution system,” Pintard said. “The Government has an obligation to clarify for the public whether or not the grid agreement they put in place, which was supposed to fix deteriorating T&D infrastructure, whether or not they have completed that. If they have not completed that, at what stage are they at in this process, and under what circumstances have Pike and the others transitioned from previous positions they held, and where does that leave Bahamas Grid and the grid contract the Government entered into with them?”
Pintard added that he had spoken with a senior BPL union leader who confirmed widespread uncertainty among the utility’s 123 T&D staff, the vast majority of whom already opposed plans to transfer or second them to BGC.
Island Grid’s exit also comes as BGC had previously stated it planned to complete the initial $130m upgrade by late April 2026, reporting that outage frequency had dropped 45% and outage duration had fallen 35% in 2025 compared to 2024. It remains unclear whether the new leadership will be able to hit that completion target.
The original Heads of Agreement also includes provisions that require parties to negotiate a buyout if the management agreement is terminated early, including granting the Bahamian government a right of first refusal to acquire 100% of BGC’s shares if a termination occurs. As of press time, no requests for comment from Pike, Ferguson, or Coleby-Davis had been returned.